Facebook shares sink, despite besting Q4 estimates

Social network posted revenue of $1.585 billion; full year revenue of $5.089 billion

Shares of Facebook dropped over 2% in after-hours trading, even though the social network delivered fourth-quarter earnings and revenue that came in above Wall Street estimates.

Facebook posted revenue of $1.585 billion for the quarter, better than Wall Street's estimates of $1.52 billion. Adjusted earnings per share came in at 17 cents in the fourth quarter, compared with the 15 cents a share that analysts were expecting.

But as we mentioned in our preview piece Tuesday, investors had most likely priced in all of the good news into the stock. Shares are down 2% to $30.51 in after-hours, after rising about 1.5% during the day, a modest uptick after after falling 5% in Tuesday trading. Shares, however, are still well above the $20 range they traded at in November.

The social network saw its monthly active users increase by 25% year to year to 1.06 billion, and saw its daily active users increase 28% from the previous year to 618 million.

Mobile MAUs were 680 million as of the end, an increase of 57% year-to-year. Mobile DAUs exceeded web DAUs for the first time in the fourth quarter of 2012.

"In 2012, we connected over a billion people and became a mobile company," said Mark Zuckerberg, Facebook founder and CEO said in a statement. "We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company."

Revenue

Facebook’s quarterly revenue was up 40% year to year, from $$1.13 billion to $1.585 billion. Full year revenue increased from $3.711 billion in 2011 to $5.089 billion in 2012.

Mobile revenue represented approximately 23% of advertising revenue for the fourth quarter of 2012, up from approximately 14% of advertising revenue in the third quarter of 2012.

Advertising revenue was $1.33 billion, or 84% of total revenue. It increased 41% from the same quarter in 2011.

Revenue from payments and fees took in $256 million.

Net income

GAAP income was $64 million, compared to $302 million for the same quarter in 2011.

Non-GAAP net income was $426 million or $0.17 per share, compared to $360 million and $0.15 per share for the same quarter in the prior year.